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Asset Amortisation Schedule

  • 17 August 2023
  • 3 replies
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Userlevel 2
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  • Occasional Observer
  • 4 replies

Hi All, 

I need a simple amortization schedule by month where:

Opening Balance = Closing Balance of Month -1

Amortisation = e.g. 30% of Opening Balance *-1

Closing Balance = Opening Balance + Amortization

I created three separate metrics but I am struggling - I am getting a circular reference when calculating Amortisation. Can you help?

Regards, 

Adam

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Best answer by Benoit 17 August 2023, 11:03

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Userlevel 6
Badge +12

Hi Adam,

To avoid the circular reference I believe you can reverse the logic by starting from your output:

I made a little model to help you:

Steps:

  1. Source input = the amount to start with
  2. Closing balance = previous(Month) + Source input - previous(Month)*Amortisation rate
  3. Amortisation = (Closing balance * amortisation rate*-1) [select: Month-1]
  4. Opening balance = Closing balance[select: Month-1]

 

I hope it helps, also I’ll inquire about existing models so we can share better insights about this use case.


Best,
Benoit

Userlevel 6
Badge +12

And we do have exisiting models that are covering this use case and that can be added on to your workspace upon request. They are called:

  • CAPEX Planning (entire application)
  • CAPEX Component (component that can be added to an existing application)

If you’re under implementation, you can refer to your CSM or SA.

If you’re already implemented, you can create a support ticket to request these models.

Hope that helps.

Best,
Benoit

Userlevel 2
Badge +1

Thanks Benoit, it helps. I do not think I need and existing model as I need to apply this logic to other calculations in the balance sheet. I will check it out though. 

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